10-KPeriod: FY2022

CASEYS GENERAL STORES INC Annual Report, Year Ended Apr 30, 2022

Filed June 24, 2022For Securities:CASY

Summary

Casey's General Stores, Inc. (CASY) reported its fiscal year 2022 results, demonstrating robust growth primarily driven by strategic acquisitions and strong performance in both fuel and inside store sales. The company expanded its footprint significantly, acquiring 207 stores and integrating them effectively, which contributed to the largest unit growth in its history. This expansion, coupled with a strategic focus on high-margin prepared foods and private label offerings, positions Casey's for continued success. Despite facing ongoing challenges such as labor market pressures and supply chain disruptions, Casey's has shown resilience. The company's long-term strategic plan, focused on enhancing the guest experience, expanding its reach, driving efficiency, and investing in its people, is progressing well. The continued growth in its Casey's Rewards program, with over 5 million members, indicates successful engagement with its customer base and a positive outlook for future customer loyalty and sales.

Financial Highlights

46 data points
Beta

Revenue

$12.95B

Net Income

$339.79M

2.6% Net Margin

EPS (Diluted)

$9.10

Total Assets

$5.51B

Cash & Equivalents

$158.88M

Free Cash Flow

$462.27M

Financial Statements
Beta
Revenue$12.95B
Operating Expenses$1.96B
Interest Expense$56.97M
Net Income$339.79M
EPS (Basic)$9.14
EPS (Diluted)$9.10
Shares Outstanding (Basic)37.16M
Shares Outstanding (Diluted)37.36M

Key Highlights

  • 1The company achieved its largest unit growth year in history, acquiring 207 stores through strategic acquisitions including Buchanan Energy, Circle K, and Pilot.
  • 2Total revenue increased by 48.8% to $12.95 billion, driven by a 72.3% increase in retail fuel sales due to higher prices and a 18.3% increase in fuel gallons sold.
  • 3Inside store sales (grocery, general merchandise, prepared food, and dispensed beverages) increased by 14.0% to $4.35 billion, supported by an expanded store count and price increases.
  • 4Prepared food and dispensed beverage revenue less cost of goods sold decreased slightly to 59.2% from 60.1%, primarily due to inflationary pressures.
  • 5Operating expenses increased by 19.8%, largely due to the increased store count, higher labor rates, and increased credit card fees driven by higher fuel pricing.
  • 6The Casey's Rewards program continued to grow, reaching approximately 5 million members, representing an increase of 1.3 million during the fiscal year.
  • 7Net income increased by 8.6% to $339.8 million, despite increased operating expenses and depreciation.

Frequently Asked Questions

Casey's revenue growth in fiscal year 2022 was primarily driven by a significant increase in retail fuel sales, up 72.3% to $8.31 billion, due to a 45.7% rise in average fuel prices and an 18.3% increase in fuel gallons sold. Additionally, inside store sales (grocery, general merchandise, prepared food, and dispensed beverages) grew by 14.0% to $4.35 billion, benefiting from the addition of 209 new stores compared to the prior year, price increases, and improved sales in key categories like pizza and breakfast items.

The strategic acquisitions, including Buchanan Energy, Circle K, and Pilot, were a major factor in Casey's performance, contributing to the largest unit growth year in its history with 207 new stores added. These acquisitions not only expanded the company's geographic reach but also provided opportunities for integrating new capabilities, achieving synergies through improved purchasing power, and expanding merchandise offerings, all of which contributed to the overall revenue increase.

Casey's faced challenges including a stressed labor market, making it difficult to find, hire, and retain store team members, and increased wage pressures. Supply chain disruptions also continued, leading to potential delivery delays and product unavailability. These factors contributed to a 19.8% increase in operating expenses, primarily due to higher labor costs and credit card fees. However, the company implemented strategies like large-scale hiring events to mitigate these issues.

While prepared food and dispensed beverage revenue increased, the revenue less cost of goods sold margin decreased slightly to 59.2% from 60.1% in the prior year, largely due to inflationary pressures. Casey's continues to focus on high-margin prepared food items, such as its signature pizza and new breakfast offerings, and aims to offset inflationary impacts through price increases and operational efficiencies. The company's strategy to promote high-margin products remains a key focus for driving profitability.